Question
One year ago, Mabel bought a coupon bond at a yield-to-maturity of 5%. When she sells the coupon bond the yield-to-maturity is know 6% causing
One year ago, Mabel bought a coupon bond at a yield-to-maturity of 5%. When she sells the coupon bond the yield-to-maturity is know 6% causing the bond's price to go down. What type of risk did Mabel suffer from?
Interest Rate Risk
Default Risk
Reinvestment Risk
Liquidity Risk
None of the above
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
